Feb 15, Colombo: The Cabinet of Ministers has given approval to reduce the Special Commodity Levy the levy on imported coconut oil to maintain the coconut price in a certain level in the local market.

Coconut Research Institute has forecasted that the coconut harvest may decrease nearly by 14 percent from January to August 2017 compared to 2016 and it could cause an increase in price of coconuts. Therefore short term strategies should be implemented to maintain the coconut price in a certain level.

Accordingly, Minister of Plantation Industries Navin Dissanayake has proposed to amend the Special Commodity Levy enabling importation of 40,000 MT of edible oil required for four months to minimize the use of coconut for other products.

Accordingly the Special Commodity Levy on a kilogram of coconut oil has been reduced from Rs. 150 to Rs. 130 while the levy of a kilogram of crude coconut oil/crude palm oil is reduced from Rs. 130 to Rs. 110. Special commodity levy of a kilogram of palm kernel and refined palm oil will be reduced from Rs. 150 to Rs. 130.